Identify whether the entrepreneurs have such cost tables or not when they enter a business.

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Answer 1

Question

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

(b)

To determine

Determine how the firms gathered information.

(c)

To determine

Determine the implications of government intervention in the market place.

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1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically. 2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer.State the condition for a consumer's utility maximizing choice and illustrate graphically.

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically.

Answer 2

Question

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

(b)

To determine

Determine how the firms gathered information.

(c)

To determine

Determine the implications of government intervention in the market place.

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Answer 3

Question

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

(b)

To determine

Determine how the firms gathered information.

(c)

To determine

Determine the implications of government intervention in the market place.

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Answer 4

Question

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

(b)

To determine

Determine how the firms gathered information.

(c)

To determine

Determine the implications of government intervention in the market place.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

(b)

To determine

Determine how the firms gathered information.

(c)

To determine

Determine the implications of government intervention in the market place.

Answer 6

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

Answer 7

Chapter 11, Problem 1QAP

(a)

To determine

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

Answer 8

(b)

To determine

Determine how the firms gathered information.

Answer 9

(b)

To determine

Determine how the firms gathered information.

Answer 10

(c)

To determine

Determine the implications of government intervention in the market place.

Answer 11

(c)

To determine

Determine the implications of government intervention in the market place.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 11.1 - Prob. 1Q Ch. 11.1 - Prob. 2Q Ch. 11.1 - Prob. 3Q Ch. 11.1 - Prob. 4Q Ch. 11.1 - Prob. 5Q Ch. 11.1 - Prob. 6Q Ch. 11.1 - Prob. 7Q Ch. 11.1 - Prob. 8Q Ch. 11.1 - Prob. 9Q Ch. 11.1 - Prob. 10Q

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

Solution Summary: The author explains that entrepreneurs typically establish broadly defined business plans prior to entering a sector, which include expected costs and expected market conditions. The cost tables should be regarded as an exercise.

Identify whether the entrepreneurs have such cost tables or not when they enter a business.

Determine how the firms gathered information.

Determine the implications of government intervention in the market place.

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Chapter 11 Solutions